The Income Tax (Cash Equivalents of Car Fuel Benefits) Order 1996

Made: 26th November 1996

Laid before the House of Commons: 26th November 1996

Coming into force: 6th April 1997

The Treasury, in exercise of the powers conferred on them by section 158(4) of the Income and Corporation Taxes Act 1988[^f00001], hereby make the following Order:

1

This Order may be cited as the Income Tax (Cash Equivalents of Car Fuel Benefits) Order 1996 and shall come into force on 6th April 1997.

2

In section 158 of the Income and Corporation Taxes Act 1988 (car fuel) for the Tables in subsection (2) (tables of cash equivalents)[^f00002] there shall be substituted —

Signed

Bowen Wells — Michael Bates — Two of the Lords Commissioners of Her Majesty’s Treasury — 26th November 1996

Explanatory note

(This note is not part of the Order)

This Order provides for new tables of flat rate cash equivalents to be substituted in section 158(2) of the Income and Corporation Taxes Act 1988 with effect from 6th April 1997. Directors and employees earning £8,500 or more a year for whom fuel is provided for private use in a company car are chargeable to income tax on an amount equal to the appropriate cash equivalent of the benefit.

Table A applies where the car has an internal combustion engine with one or more reciprocating pistons and is not a diesel car, and Table AB where the car has an internal combustion engine with one or more reciprocating pistons and is a diesel car. Table B applies where the car does not have an internal combustion engine with one or more reciprocating pistons, and accordingly applies to rotary engined cars.

Footnotes

[^f00001]: 1988 c. 1; section 158(4) was amended by section 53(3) of the Finance (No. 2) Act 1992 (c. 48).

[^f00002]: Section 158(2) was substituted by section 53(2) of the Finance (No. 2) Act 1992. The Tables in section 158(2) were substituted by S.I. 1995/3035 with effect from 6th April 1996.